Since the inauguration of the Logistics Section in NYK in 1983, the NYK Group has endeavored to meet the diverse needs of customers as a "comprehensive logistics operator" by going beyond its basic business as a shipping enterprise. The group's logistics division has now grown to operate more than 50 offices and more than 100 logistics centers in 23 countries around the globe.

The newly formulated L.S.P. aims to bring about the phenomenal expansion of business in the logistics division by making the most of the reservoir of knowhow built over 20 years so that the NYK brand will be recognized by customers as a global partner in supply chain management.

The L.S.P. encompasses a wide range of elements, including organization, investment plan, information technology (IT), personnel training and region-by-region marketing focuses. It has set strategic targets to be achieved over the short term with emphasis on the following points:

Marketing on a region-by-region basis:
The world has been divided into six regions - the Americas, Europe, Oceania, Asia (ASEAN area), China and Japan. Strategically important marketing targets will be determined mainly on each regions initiative to flexibly and agilely cope with market change and meet the needs of customers.

Establishment of regional control bodies carrying the name "NYK Logistics":
Logistics management organizations bearing the name "NYK Logistics plus the name of the region in parentheses" will be set up in each region in April 2003. These organizations, each with broad authority transferred from NYK's head office, will form a global system supporting independent logistics operations in each region.

Promotion of the integrated solution business model:
Such activities as high-value-added warehousing and the expansion of intra and inter-regional distribution networks will be marketing targets common to all regions. To be offered as the core business in these spheres will be integrated solutions that will combine, through a global network, an abundance of logistics services that have been developed by the logistics division, including domestic and international distribution, consolidation, management of the issuance and receipt of orders, inventory management, Customs clearance, packing and management of logistics information.

Strengthening of IT:
IT will be strengthened as the pivotal point of the integrated solution business. An IT system network will be constructed to ensure visibility of shipments at all points along the supply chain - that is, during transport, distribution and storage; to make active use of simulation tools from the stage of designing the supply chain; and to meet customers' logistics outsourcing needs, including cost management.

Cultivation of new frontiers:
The expansion of the group's frontiers, such as into the Middle East and Latin America, will be stepped up in order to enlarge the global network.
The strategy of expanding the logistics division's operations by means of the L.S.P. represents the commitment of the NYK Group - for the sake of customers and other stakeholders - to achieving the continuous growth of the group as a comprehensive logistics service provider without confining itself just to shipping.

NYK intends to enhance the value of the NYK brand as a comprehensive group of logistics enterprises by reinforcing its logistics division, including Yusen Air & Sea Service Co., Ltd. which is engaged primarily in airfreight forwarding, as a pillar of core businesses that, along with the operation of container liner routes, tramps/specialized carriers and passenger ships supports the activities of the group.